Notice2021-23657
Proposed Collection; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 1, 2021
Issuing agencies
Federal Housing Finance Agency
Abstract
In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA), the Federal Housing Finance Agency (FHFA or the Agency) is seeking public comments concerning an information collection known as "Minimum Requirements for Appraisal Management Companies," which has been assigned control number 2590-0013 by the Office of Management and Budget (OMB). FHFA intends to submit the information collection to OMB for review and approval of a three-year extension of the control number, which is due to expire on October 31, 2021.
Full Text
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<title>Federal Register, Volume 86 Issue 208 (Monday, November 1, 2021)</title>
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[Federal Register Volume 86, Number 208 (Monday, November 1, 2021)]
[Notices]
[Pages 60239-60242]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-23657]
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FEDERAL HOUSING FINANCE AGENCY
[No. 2021-N-11]
Proposed Collection; Comment Request
AGENCY: Federal Housing Finance Agency.
ACTION: 30-Day notice of submission of information collection for
approval from Office of Management and Budget.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the Federal Housing Finance Agency (FHFA or the
Agency) is seeking public comments concerning an information collection
known as ``Minimum Requirements for Appraisal Management Companies,''
which has been assigned control number 2590-0013 by the Office of
Management and Budget (OMB). FHFA intends to submit the information
collection to OMB for review and approval of a three-year extension of
the control number, which is due to expire on October 31, 2021.
DATES: Interested persons may submit comments on or before December 1,
2021.
ADDRESSES: Submit comments to FHFA, identified by ``Proposed
Collection; Comment Request: `Minimum Requirements for Appraisal
Management Companies, (No. 2021-N-11)' '' by any of the following
methods:
<bullet> Agency Website: <a href="http://www.fhfa.gov/open-for-comment-or-input">www.fhfa.gov/open-for-comment-or-input</a>.
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
Follow the instructions for submitting comments. If you submit your
comment to the Federal eRulemaking Portal, please also send it by email
to FHFA at <a href="/cdn-cgi/l/email-protection#0b596e6c486466666e657f784b6d636d6a256c647d"><span class="__cf_email__" data-cfemail="73211614301c1e1e161d070033151b15125d141c05">[email protected]</span></a> to ensure timely receipt by the Agency.
<bullet> Mail/Hand Delivery: Federal Housing Finance Agency, Eighth
Floor, 400 Seventh Street SW, Washington, DC 20219, ATTENTION: Proposed
Collection; Comment Request: ``Minimum Requirements for Appraisal
Management Companies, (No. 2021-N-11).''
We will post all public comments we receive without change,
including any personal information you provide, such as your name and
address, email address, and telephone number, on the FHFA website at
<a href="http://www.fhfa.gov">http://www.fhfa.gov</a>. In addition, copies of all comments received will
be available for examination by the public through the electronic
comment docket for this PRA Notice also located on the FHFA website.
Also send a copy of any comments that concern this information
collection to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection request by selecting ``Federal Housing Finance
Agency'' under ``Currently Under Review;'' then check ``Only Show ICR
for Public Comment'' checkbox. Once you have found this information
collection request, select ``Comment,'' and enter or upload your
comment and information. Alternatively, you can mail your written
comments to the Office of Information and Regulatory Affairs, OMB, Room
3002, New Executive Office Building, Washington, DC 20503; Attention:
Desk Officer for the Federal Housing Finance Agency.
FOR FURTHER INFORMATION CONTACT: Robert Witt. Senior Policy Analyst,
Office of Housing and Regulatory Policy, by email at
<a href="/cdn-cgi/l/email-protection#1e4c717c7b6c6a3049776a6a5e7876787f30797168"><span class="__cf_email__" data-cfemail="20724f424552540e7749545460464846410e474f56">[email protected]</span></a> or by telephone at (202) 649-3128; or Maura
Dundon, Associate General Counsel, <a href="/cdn-cgi/l/email-protection#7538140007145b31001b111a1b35131d13145b121a03"><span class="__cf_email__" data-cfemail="064b677374672842736862696846606e606728616970">[email protected]</span></a>, (202) 853-
6734 (these are not toll-free numbers); Federal Housing Finance Agency,
400 Seventh Street SW, Washington, DC 20219. For TTY/TRS users with
hearing and speech disabilities, dial 711 and ask to be connected to
any of the contact numbers above.
SUPPLEMENTARY INFORMATION: FHFA is seeking comments on its upcoming
request to OMB to renew the PRA clearance for the following collection
of information:
Title: Minimum requirements for appraisal management companies.
OMB Number: 2590-0013.
Affected Public: Participating States and State-registered
Appraisal Management Companies.
A. Need for and Use of the Information Collection
In 2015, FHFA, the Federal Deposit Insurance Corporation (FDIC),
the Office of the Comptroller of the Currency (OCC), and the Board of
Governors of the Federal Reserve System (Board) (collectively, the
Agencies) jointly issued regulations \1\ to implement minimum statutory
requirements to be applied by states in the registration and
supervision of appraisal management companies (AMCs).\2\ These minimum
[[Page 60240]]
requirements apply to states that have elected to establish an
appraiser certifying and licensing agency with authority to register
and supervise AMCs (participating states).\3\
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\1\ The National Credit Union Administration and the Bureau of
Consumer Financial Protection also participated in the joint
rulemaking but, by agreement, the responsibility for clearance under
the PRA of information collections contained in the joint
regulations is shared only by the FDIC, OCC, the Board, and FHFA.
\2\ See 12 U.S.C. 3353(a). An AMC is an entity that serves as an
intermediary for, and provides certain services to, appraisers and
lenders.
\3\ 12 U.S.C. 3346.
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The regulations also implement the statutory requirement that
states report to the Appraisal Subcommittee (ASC) of the Federal
Financial Institutions Examination Council (FFIEC) the information
required by the ASC to administer the national registry of AMCs (AMC
National Registry or Registry).\4\ The AMC National Registry includes
AMCs that are either: (1) Subsidiaries owned or controlled by an
insured depository institution (as defined in 12 U.S.C. 1813) and
regulated by either the FDIC, OCC, or the Board (federally regulated
AMCs); \5\ or (2) registered with, and subject to supervision of, a
state appraiser certifying and licensing agency.
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\4\ See 12 U.S.C. 3353(e).
\5\ See 12 CFR 1222.21(k) defining a federally regulated AMC.
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FHFA's AMC regulation, located at Subpart B of 12 CFR part 1222, is
substantively identical to the AMC regulations of the FDIC, OCC, and
the Board and contains the recordkeeping and reporting requirements
described below.
1. State Reporting Requirements (Removed; Formerly IC #1)
FHFA's 60-day notice included an information collection named
``State Reporting Requirements'' regarding the regulatory requirement
that each state electing to register AMCs for purposes of permitting
AMCs to provide appraisal management services relating to covered
transactions in the state submit to the ASC the information regarding
such AMCs required to be submitted by ASC regulations or guidance
concerning AMCs that operate in the state.\6\ However, FHFA will not
request to renew the State Reporting Requirements IC. The FDIC recently
removed the same IC request in its 30-day notice. The FDIC stated that
it did not need to take the PRA reporting burden because the ASC had
issued its own regulations or guidance implementing these requirements
and submitted its own IC taking the PRA burden.\7\ FHFA concurs with
the FDIC's analysis. Accordingly, FHFA will not request to renew the IC
on State Reporting Requirements and that IC will be removed.
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\6\ See 12 CFR 1222.26.
\7\ See Federal Deposit Insurance Corporation, Agency
Information Collection Activities: Proposed Collection Renewal;
Comment Request, 86 FR at 58269, 58274 (Oct. 21, 2021).
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2. State Recordkeeping Requirements (Redesignated IC #1; Formerly IC
#2)
States seeking to register AMCs must have an AMC registration and
supervision program. The regulation requires each participating state
to establish and maintain within its appraiser certifying and licensing
agency a registration and supervision program with the legal authority
and mechanisms to: (i) Review and approve or deny an application for
initial registration; (ii) periodically review and renew, or deny
renewal of, an AMC's registration; (iii) examine an AMC's books and
records and require the submission of reports, information, and
documents; (iv) verify an AMC's panel members' certifications or
licenses; (v) investigate and assess potential violations of laws,
regulations, or orders; (vi) discipline, suspend, terminate, or deny
registration renewals of, AMCs that violate laws, regulations, or
orders; and (vii) report violations of appraisal-related laws,
regulations, or orders, and disciplinary and enforcement actions to the
ASC.\8\
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\8\ See 12 CFR 1222.23(a).
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The regulation requires each participating state to impose
requirements on AMCs that are not federally regulated (non-federally
regulated AMCs) to: (i) Register with and be subject to supervision by
a state appraiser certifying and licensing agency in each state in
which the AMC operates; (ii) use only state-certified or state-licensed
appraisers for federally regulated transactions in conformity with any
federally regulated transaction regulations; (iii) establish and comply
with processes and controls reasonably designed to ensure that the AMC,
in engaging an appraiser, selects an appraiser who is independent of
the transaction and who has the requisite education, expertise, and
experience necessary to competently complete the appraisal assignment
for the particular market and property type; (iv) direct the appraiser
to perform the assignment in accordance with the Uniform Standards of
Professional Appraisal Practice; and (v) establish and comply with
processes and controls reasonably designed to ensure that the AMC
conducts its appraisal management services in accordance with sections
129E(a) through (i) of the Truth-in-Lending Act.\9\
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\9\ See 12 CFR 1222.23(b). Sections 129E(a) through (i) of the
Truth-in-Lending Act are located at 15 U.S.C. 1639e(a)-(i).
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FHFA is redesignating this IC from #2 to #3.
3. AMC Disclosure Requirements (State-Regulated AMCs) (Redesignated IC
#2; Formerly IC #3)
The regulation provides that an AMC may not be registered by a
state or included on the AMC National Registry if the company is owned,
directly or indirectly, by any person who has had an appraiser license
or certificate refused, denied, cancelled, surrendered in lieu of
revocation, or revoked in any state for a substantive cause.\10\ The
regulation also provides that an AMC may not be registered by a state
if any person that owns 10 percent or more of the AMC fails to submit
to a background investigation carried out by the state appraiser
certifying and licensing agency.\11\ Thus, each AMC registering with a
state must provide information to the state on compliance with those
ownership restrictions. Further, the regulation requires that a
federally regulated AMC report to the state or states in which it
operates the information required to be submitted by the state pursuant
to the ASC's policies, including policies regarding the determination
of the AMC National Registry fee, and information regarding compliance
with the ownership restrictions described above.
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\10\ See 12 CFR 1222.24(a), 1222.25(b).
\11\ See 12 CFR 1222.24(b).
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In FHFA's 60-day notice, we combined federally and non-federally
regulated AMCs in former IC #3, entitled ``AMC Reporting
Requirements.'' Subsequently, the FDIC issued its 30-day notice
dividing the same information collected in FHFA's ``AMC Reporting
Requirements'' IC into two different ICs: One for state-regulated AMCs,
for which FHFA would take 10 percent of the burden (FDIC IC #3); and
one for federally regulated AMCs, for which FHFA would take zero burden
(FDIC IC #4).\12\ FHFA concurs with this approach and revises its
submission by disaggregating the federally regulated and state-
regulated AMCs. In addition, FHFA is correcting the title of this IC to
reflect that it is a disclosure requirement instead of a reporting
requirement and redesignating it to IC #2. Thus, FHFA's redesignated IC
#2 entitled ``AMC Disclosure Requirements (State-regulated AMCs)'' now
only applies to state-regulated AMCs and corresponds to FDIC's IC #3.
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\12\ See 86 FR at 58276, 58277. The FDIC's IC #3 and IC #4 are
combined in FHFA's IC #3.
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[[Page 60241]]
4. AMC Disclosure Requirements (Written Notice of Appraiser Removal
From Network or Panel) (Redesignated IC #3; Formerly IC #4)
An entity meets the definition of an AMC that is subject to the
requirements of the AMC regulation if, among other things, it oversees
an appraiser panel of more than 15 state-certified or state-licensed
appraisers in a state, or 25 or more state-certified or state-licensed
appraisers in two or more states, within a given 12-month period.\13\
For purposes of determining whether a company qualifies as an AMC under
that definition, the regulation provides that an appraiser in an AMC's
network or panel is deemed to remain on the network or panel until: (i)
The AMC sends a written notice to the appraiser removing the appraiser
with an explanation; or (ii) receives a written notice from the
appraiser asking to be removed or a notice of the death or incapacity
of the appraiser.\14\ The AMC would retain these notices in its files.
FHFA is correcting the title of this IC from ``AMC Recordkeeping
Requirements'' to ``AMC Disclosure Requirements (Written Notice of
Appraiser Removal From Network or Panel)'' to reflect that it is a
disclosure requirement instead of a reporting requirement and
redesignating it to IC #3 from IC #4.
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\13\ See 12 CFR 1222.21(c)(1)(iii).
\14\ See 12 CFR 1222.22(b).
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B. Burden Estimate
For the information collections described above, the general
methodology is to compute the industry-wide burden hours for
participating states and AMCs and then assign a share of the burden
hours to each of the Agencies for each information collection.
As noted above, each of the Agencies' AMC regulations contains
reporting and recordkeeping requirements applying to participating
states and to both federally regulated and non-federally regulated
AMCs.\15\ The Agencies have estimated that approximately 3,860 entities
meet the regulatory definition of an ``appraisal management company.''
\16\ According to the AMC National Registry, 3,817 (rounded to 3,820)
are state-regulated.\17\ Unlike the insured depository institutions
regulated by the OCC, FDIC, and the Board, none of FHFA's regulated
entities owns or controls an AMC or, by law, could ever own or control
an AMC. Accordingly, the Agencies have agreed that responsibility for
the burdens arising from reporting and recordkeeping requirements
imposed upon federally regulated AMCs are to be split evenly among the
OCC, FDIC, and the Board, and that FHFA will not include those burdens
in its totals. The four Agencies have agreed to split the total burdens
imposed upon participating states and upon non-federally regulated AMCs
evenly between them.
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\15\ In FHFA's regulations, the definition for AMC is set forth
at 12 CFR 1222.21(c).
\16\ Id. at 58276.
\17\ Id.
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Thus, for IC #1 ``State Recordkeeping Requirements,'' which relates
to reporting and recordkeeping requirements imposed upon participating
states, each agency is responsible for 25 percent of the total
estimated burden. For IC #3``AMC Disclosure Requirements (Written
Notice of Appraiser Removal From Network or Panel)'' which relates to
disclosure requirements imposed upon both federally regulated AMCs and
non-federally regulated AMCs, the OCC, FDIC, and the Board are each
responsible for 30 percent of the total burden, while FHFA is
responsible only for 10 percent of the burden imposed.\18\
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\18\ FHFA's IC#2 ``AMC Disclosure Requirements (State-regulated
AMCs) now collects information relating only to state-regulated
AMCs, but FHFA will still be allocated only 10 percent of the
burden. See 86 FR at 58277.
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The Agencies estimate the total annualized hour burden placed on
respondents by the information collection in the joint AMC regulations
to be 8,208 hours. FHFA estimates its share of the hour burden to be
837 hours. The calculations on which those estimations are based are
described below.
1. State Recordkeeping Requirements (IC #1)
The estimated burden hours on participating states for developing
and maintaining an AMC licensing program is calculated by multiplying
the number of states without a registration and licensing program by
the hour burden to develop the system. The total burden hours are then
equally divided among the FDIC, OCC, Board, and FHFA. According to the
ASC there are four states (the territories of Guam, Mariana Islands,
Puerto Rico, and the U.S. Virgin Islands) that have not developed a
system to register and oversee AMCs.\19\ The burden estimate of 40
hours per state without a registration system is unchanged from the
estimate provided for the currently-approved ICR. Therefore, the total
estimated burden attributable to all of the Agencies is: 4 states x 40
hours/state = 160 hours. The estimated burden hours attributable to
FHFA are 160 hours x 25 percent = 40 hours.
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\19\ Appraisal Subcommittee ``States' Status on Implementation
of AMC Programs,'' available at <a href="https://www.asc.gov/National-Registries/StatesStatus.aspx">https://www.asc.gov/National-Registries/StatesStatus.aspx</a>.
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2. AMC Disclosure Requirements (State-Regulated AMCs) (IC #2)
The burden for AMC disclosure requirements for information needed
to determine the AMC National Registry fee and information regarding
compliance with the AMC ownership restrictions is calculated by
multiplying the number of AMCs by the frequency of response and then by
the burden per response. As described above, 30 percent of the burden
hours are then assigned to each of the FDIC, OCC, and the Board, while
10 percent are assigned to FHFA. There are 3,820 state-regulated AMCs.
The frequency of response is estimated as the number of states that
do not have an AMC registration program in which the average AMC
operates.\20\ As discussed above, 4 states do not have AMC registration
or oversight programs. According to the Consumer Financial Protection
Bureau (CFPB), the average AMC operates in 19.56 states.\21\ Therefore,
the average AMC operates in approximately 2 states that do not have AMC
registration systems: (4 states/55 states) x 19.56 states = 1.422
states, rounded to 2 states. The burden estimate of one hour per
response is unchanged from the estimate provided for the currently-
approved ICR. Therefore, the total estimated hour burden is: 3,820 AMCs
x 2 states x 1 hour = 7,640 hours. The estimated burden hours
attributable to FHFA are 7,640 hours x 10 percent = 764 hours.
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\20\ The number of states includes all U.S. states, territories,
and districts to include: The Commonwealth of the Northern Mariana
Islands; the District of Columbia; Guam; Puerto Rico; and the U.S.
Virgin Islands.
\21\ See OMB No. 3064-0195 and the accompanying Supporting
Statement submitted by the FDIC in 2018, available at <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201804-3064-013">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201804-3064-013</a>.
Additional details on the survey can be found in the text
accompanying the final rule. See Minimum Requirements for Appraisal
Management Companies, 80 FR 32,677 (June 9, 2015).
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3. AMC Disclosure Requirements (Written Notice of Appraiser Removal
From Network or Panel) (IC #3)
The burden for disclosure by AMCs of written notices of appraiser
removal from a network or panel is estimated to be equal to the number
of appraisers who leave the profession per year multiplied by the
estimated percentage of appraisers who work for AMCs, then
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multiplied by burden hours per notice. As described above, 30 percent
of the burden hours are then assigned to each of the FDIC, OCC, and the
Board, while 10 percent are assigned to FHFA.
The number of appraisers who leave an AMC annually, either by
resigning, being laid off, or having their licenses revoked or
surrendered, is estimated to be 4,130. The burden estimate of 0.08
hours per notice is unchanged from the estimate provided for the
currently-approved ICR. Therefore, the estimated total hour burden is:
4,130 notices x 0.08 hours = 330 hours (rounded to the nearest whole
number). The estimated burden hours attributable to FHFA are 330 hours
x 10 percent = 33 hours.
C. Response to Comments Received
In accordance with the requirements of 5 CFR 1320.8(d), FHFA
published an initial notice and request for comments regarding the
renewal of the PRA clearance for this information collection in the
Federal Register on August 23, 2021 (60-day notice).\22\ The 60-day
comment period closed on October 22, 2021.
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\22\ See 86 FR 47107 (Aug. 23, 2021).
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FHFA received one comment. The commenter questioned FHFA's estimate
that 3,860 entities meet the regulatory definitions of an AMC. The
commenter stated that ``[b]ased on the federal definition of an AMC and
our understanding of the number of state licensed AMCs, this estimate
of approximately 3,860 entities meeting the definition of an AMC seems
exceedingly high. We believe there are approximately 300 licensed
entities doing business as AMCs.'' The commenter does not provide any
detail to explain how they arrived at their much lower estimate of 300
compared to FHFA and FDIC's 3,860. Their comment gives no basis to
ascertain the source of the discrepancy, either as to the underlying
data or the analysis of the regulatory definition of AMCs.
FHFA has reviewed the comment and continues have confidence in the
3,860 estimate of AMCs. ASC's 2020 Annual Report states that ``[a]s of
December 31, 2020, the Registry contained 3,417 AMCs.'' The FDIC's
review determined that there are 3,854 total active AMCs in the
Registry (both federally and non-federally regulated) as of June 2021,
which we rounded to 3,860 in our 60-day notice. FHFA concurs with the
FDIC's review of the ASC Registry in June 2021. Both the FDIC analysis
and the ASC Annual Report substantiate FHFA's estimate and confirms our
concurrence with the FDIC's review. FHFA remains confident that the
number is accurate. Accordingly, FHFA will not change the number of
AMCs in the 30-day notice.
D. Comments Request
In accordance with the requirements of 5 CFR 1320.10(a), FHFA is
publishing this second notice to request comments regarding the
following: (1) Whether the collection of information is necessary for
the proper performance of FHFA functions, including whether the
information has practical utility; (2) the accuracy of FHFA's estimates
of the burdens of the collection of information; (3) ways to enhance
the quality, utility, and clarity of the information collected; and (4)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology.
Kevin Smith,
Chief Information Officer, Federal Housing Finance Agency.
[FR Doc. 2021-23657 Filed 10-29-21; 8:45 am]
BILLING CODE 8070-01-P
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